Success Dragon share placement nets US$8.8mln

Gaming services company Success Dragon International Holdings Ltd says it has completed its placing-out of 292.61 million shares to at least six investors at the price of HKD0.24 a share. The company told the Hong Kong Stock Exchange on Tuesday that it had completed the share placement and raised HKD68.8 million (US$8.8 million) net.

It told the stock exchange on August 10 that it intended to use about HKD30 million of the proceeds of the share placement to fund business development, about HKD21.4 million to repay loans and other payables, and to use the remainder as general working capital.

Success Dragon said in its latest disclosure to the stock exchange that it believes all the investors in the shares placed out are independent third parties, and that none has become a substantial shareholder by buying its shares.

The investors in the shares placed out now own 12.37 percent of the stock of Success Dragon. The share placement reduces the proportion of the company owned by the holder of the biggest single stake, Liu Shiwei, to 25.88 percent from 29.53 percent, and the proportion owned by independent non-executive director Yong Peng Tak to 0.03 percent from 0.04 percent.

It reduces the proportion of Success Dragon stock held by the public – other than the investors in the shares placed out – to 61.72 percent from 70.43 percent.

Success Dragon makes most of its income from managing slot machines in the Macau market. The company reported a loss of nearly HKD130.7 million for the financial year ending March 31.